"Michael Kors Holdings Ltd. aims to more than double its
North American store fleet to 400 and more than quadruple to
1,000-plus its department-store boutiques. Michael Kors
will operate in malls and street locations, like Coach, sell
accessories-heavy collections, like Coach, and focus on
“accessible” luxury, yes, like Coach."

Coach is trying to "climb" the fashion ladder, while
Michael Kors is trying to make itself more affordable. The two
brands will compete more directly as that gap decreases.

And of course, that could yank away a bunch of Coach's customers
in one of the luxury industry's fastest-growing categories,
handbags and accessories.

Will Michael Kors succeed?

It will be an uphill battle to top the dominant Coach — a brand
that is firmly entrenched as the long-time market leader in that
important handbag segment — but the upstart is showing some
serious audacity to take on the massive brand head-to-head.